Factors Influencing Equitable Distribution in Pennsylvania
States across the U.S. can be divided into two types: equitable distribution states and community property states. Pennsylvania is considered an equitable distribution state when it comes to dividing marital property. That means assets and debts from the marital estate are divided in accordance with what is fair—not necessarily evenly. This begs the question: what factors do the courts consider when dividing the marital estate during divorce? In this article, the Philadelphia divorce lawyers at the Law Offices of Lauren H. Kane will answer that very question.
Factors considered during equitable distribution
Some folks think that fault or causing problems in the marriage affects how the courts will divide assets during a divorce. That isn’t the case in Pennsylvania. Instead, the courts consider the following factors when equitably distributing the marital estate:
- The length of the marriage
- Whether there are previous marriages
- The age of both parties
- The health of both parties
- The income of both parties
- Tax implications
- The amount of non-marital assets one party has
- Prenuptial agreements
- Which party will have custody of the children
- Whether one party helped the advancement of the other’s income
- The standard of living the couple enjoyed during the marriage
- The employability of both parties
Marital versus separate property in Pennsylvania
If the couple cannot reach a settlement in mediation, then the courts will have to decide how to divide the marital estate. This, however, begs the question: what constitutes the marital estate and what constitutes separate property?
Marital assets or marital property can include the family home, cars, furniture, businesses, jewelry, art, investments, and retirement accounts. Any asset or debt accrued during the marriage is considered the property of the marital estate. Assets and debts that the spouses brought into the marriage are considered separate property. This remains true even if the asset was purchased in one party’s name. For example, even if your name doesn’t appear on the title to a vehicle, you are entitled to an equitable portion of that vehicle.
On the other hand, separate or non-marital assets are not equitably distributed and remain the sole property of one spouse. Further, any property that was excluded by a prenuptial agreement will not be included in the equitable distribution of the marital estate. Property that was brought into the marriage and kept separate from the marriage is also considered non-marital property. Gifts and inheritances are also not considered marital property.
On the other hand, if any of these items increased in value during the marriage, the increased value can be considered marital property. So, it often becomes complicated and requires the engagement of a skilled family law attorney.
Talk to a Philadelphia, PA Divorce Lawyer Today
The Law Offices of Lauren H. Kane represent the interests of couples who intend on getting a divorce. Call our Philadelphia family lawyers today to schedule an appointment, and we’d be more than happy to answer any questions you may have.
